Fitch Revises 4 Nigerian Banks’ Outlook to Negative
By Modupe Gbadeyanka
Fitch Ratings has revised the Outlook on 4 Nigerian banks to Negative from Stable and affirmed the Long-Term Issuer Default Ratings (IDRs) of 10 banks and financial institutions.
The affected institutions are Zenith Bank Plc, First Bank of Nigeria Ltd, United Bank for Africa Plc (UBA), Guaranty Trust Bank Plc (GTBank), Access Bank Plc, Diamond Bank Plc, Fidelity Bank Plc, Union Bank Plc, First City Monument Bank Limited (FCMB), Wema Bank Plc and the bank holding company, FBN Holdings Plc (FBNH).
The National Ratings of Stanbic IBTC Bank Plc, as well as its bank holding company, Stanbic IBTC Holdings Plc (SIBTCH) are also affirmed.
The IDR Outlooks on Zenith and GTB (both at B+) have been revised to Negative following a recent similar action on Nigeria’s (B+) Outlook.
The other two banks, whose Outlooks have been revised to Negative, are Diamond and FBN/FBNH and the revision reflects their weaker financial profiles.
Fitch said it has downgraded the Long-and Short-Term National Ratings of FBN/FBNH and Diamond to ‘BB+(nga)’ and ‘B(nga)’ respectively to reflect heightened vulnerability of capital due to downside asset quality risks.